Will Bone ShibaSwap reach $2 again?

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.

• BONE was bullish on the higher timeframe charts but there was heavy resistance near the $1.9-$2 levels.
• The lower timeframe charts showed that a move below $1.6 could see a sizeable retracement.

Bone ShibaSwap [BONE] ranked fourth on the list of meme coins sorted by market cap, according to CoinMarketCap. The token embarked on an impressive rally in June and has not halted yet.

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How much are 1,10,100 BONEs worth today?

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The price action showed that further gains were possible, but the higher timeframe resistance below the $2 level could slow down the progress of the bulls. What scenarios can BONE swing traders plan for?

A fair value gap at $1.35 could attract BONE southward

Fair value gaps, or imbalances left during a strong move, were something that BONE has made a habit of going back to fill. The most recent one at $1.135-$1.375 was an imbalance that was not yet filled. The previous gaps, such as the ones left on 3 July or 7 July, have both been filled.

The $1.35 region also coincided with the resistance zone at $1.4 that BONE ran into in the first week of July. Hence, a move lower toward this region could offer a buying opportunity. At the time of writing, the market structure on the 1-day chart was firmly bullish.

The RSI showed strong bullish momentum and the OBV has trended higher since mid-June. This reflected buying pressure that drove prices higher.

The red box from $1.61-$2.1 represented a bearish order block on the weekly chart from February. BONE has already entered this resistance zone. Therefore, if we see a bearish structure break on the daily chart, it could be the first sign of rejection.

On-chain metrics showed accumulation and signaled further price gains were likely

The mean coin age has been on an uptrend since April. Even though it saw a sharp drop in July, it bounced back. This showed an accumulation of BONE across the network, but the high MVRV ratio was a concern.

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The positive MVRV showed profit-taking activity could push prices lower in the coming weeks. The active deposits did not show a large spike, and traders can keep an eye on it. Such a spike could precede a sharp price drop, such as the one that occurred on 8 July.

The lower high from March at $1.87, marked in orange, was a level that could be important again. A rejection from the $1.6-$2 higher timeframe resistance could retrace to $1.4 before rallying again. Alternatively, if the selling pressure is too great it could push BONE back to the $0.9-$1 area.